Unicredit CEO Federico Ghizzoni at the Verona Fieragricola
Agribond is the name of the line offunding for agriculture from a total of 600 million euros that Unicredit announced it had made available in the two-year period 2014-2015. On behalf of the farmers who will use it, the SGFA Funds Management Company, a public body headed by the Institute for the Agricultural Food Market, will guarantee.
In the case of the Agribonds, these are loans at a subsidized rate with a duration of six years which companies in the Italian agricultural sector will be able to use to support investments with a medium or long-term time horizon. The 600 million fund could also increase if individual regions decide to increase funding for agriculture allocating other resources to SGFA.
Unicredit, who spoke about Agribonds during the Fieraricola course in Verona announcing a program of funding for agriculture entitled 'Unicredit for Agriculture', it said it was ready to make other resources available in the agriculture system through two financial actions entitled 'Revolving super-cash' (advance invoices and contracts) and 'Reverse factoring' (release of credits). In both cases, however, the recipients are the 'big buyers' of the sector, who will still benefit from it together with their respective supply chains.
According to Unicredit estimates, but not limited to, agriculture in Italy has excellent future prospects due to growing demand and substantial price stability. To intervene in funding for agriculture it can therefore prove to be a business for lenders. But the banks do not give anything away and if they finance agriculture it will only be provided that Italian agricultural companies know how to remain reliable interlocutors - from the point of view of the banks - and that is, they know how to innovate. The value of made in Italy can do the rest.
Today the Italian agricultural sector has over 780,000 active companies operating throughout the supply chain and throughout the country. The agri-food sector as a whole, with a value of 250 billion euros in world production and exports exceeding 35 billion euros a year, sees agriculture as its main asset. Speak about agriculture funding, as was done in the context of Fieraricola in the presence of institutions and major industry associations, it means talking about the future of our country.